EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.3319% against the USD and closed at 1.3319, after European Central Bank policymaker and the President of the Bundesbank, Jens Weidmann, stated that raising the Euro-zone’s rescue fund will only end up running into financial and political constraints, urging policymakers to address the roots of the bloc’s debt crisis.
In economic news, private sector loan growth for the Euro-zone slowed to 0.7% in February from 1.1% in January. Moreover, M3 money supply in Euro-zone rose 2.8% in February, compared to 2.5% rise recorded in January. Additionally, German consumer price index rose 2.1% in March less than market expectation of 2.2% growth. Also, the Gross Domestic Product (GDP) in France, rose 0.2% in the fourth quarter of 2011, in line with initial estimates, and following a 0.3% increase in the third quarter.
Separately, Italy auctioned €8.5 billion of 6-month bills at an average yield of 1.119%, lowest since September 2010.
In the Asian session, at GMT0300, the pair is trading at 1.3326, with the EUR trading 0.05% higher from yesterday’s close.
The pair is expected to find support at 1.3278, and a fall through could take it to the next support level of 1.3230. The pair is expected to find its first resistance at 1.3373, and a rise through could take it to the next resistance level of 1.3421.
Trading trends in the pair today are expected to be determined by the release of economic confidence and industrial confidence data in the Euro-zone, and German unemployment rate.
The currency pair is showing convergence with its 20 Hr and trading below its 50 Hr moving average.
